A new report says that Europe is arguing that when services are considered that the trade deficit with the US is only €50 billion and they could bridge that by purchasing more natural gas and agricultural products.

Sefkovic indicated the EU would not accept a deal that kept tariffs at 10%, which is a critical point.

We are waiting on US deals to see if 10% is the floor, or if Trump is going to try and use tariffs to raise revenue. My guess is that Congress won’t tolerate 10% and that many partners won’t either but Trump does love tariffs so we’ll see.

Hassett said earlier today that a deal announcement is coming, which I expect to be with India. Will the floor go below 10%?

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